Neuberger secures Chinese licence for private clients

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Neuberger Berman has joined a handful of foreign-owned asset managers with a licence to manage private funds in mainland China.

Fidelity, UBS Asset Management, Man Group and Invesco, along with several Asian-based firms, already have the private fund manager registration through the Asset Management Association of China.

Neuberger is the seventh foreign-owned company to get the licence.

“This is a very important milestone for Neuberger Berman and we are delighted to be one of the first firms to secure this licence,” says head of China Patrick Liu. “We are committed to building a leading investment management firm in China, offering our customised product solutions in equities, fixed income, multi-asset, quantitative investing and alternatives.”

The licence lets Neuberger manage funds and raise assets for qualified investors, such as high net worth individuals. It already manages equity, fixed income and private equity portfolios for several Chinese institutional and intermediary customers.

Neuberger has been able to operate an onshore business in mainland China since it established a wholly foreign-owned enterprise (WFOE) in Shanghai in April.

As part of the launch, Neuberger made several hires, including Liu, as well as William Hui, who joined as head of institutional business for China, and Marco Tang, who heads up the retail business.

The firm has also employed equity portfolio manager Bin Yu and fixed income manager Peter Ru.

Head of Asia Pacific Nick Hoar says: “Neuberger Berman has made significant progress across the Asia Pacific region in the past few years.

“China represents a tremendous opportunity for us and we are committed to adding local resources across different functions including portfolio management, legal and compliance, marketing and research.”

Fidelity was the first asset manager to gain the private fund manager registration and the only one so far to launch a product, with the a China bond fund launching in May.